C.R. Bard to take Q4 lawsuit loss

Says charge won't affect 2004 outlook

By

WilliamL. Watts

WASHINGTON (CBS.MW) -- Medical devices maker C.R. Bard will take an unanticipated $58 million fourth-quarter charge after losing a civil lawsuit in federal court in New York City, the company said Friday in a regulatory filing.

The case centered on a dispute "regarding whether the company breached agreements with the plaintiffs by failing to use appropriate efforts to promote the growth of a business that the company purchased from the plaintiffs, failed to pay consideration due under the agreement and induced the sale of the company by misrepresentation," Bard said in an 8-K filing with the Securities and Exchange Commission.

The jury awarded the plaintiffs $58 million.

Bard
BCR
said it believes the evidence doesn't support the verdict and that the amount of the award is "grossly excessive." Bard said it will file post-trial motions to set aside the verdict or reduce the amount of the award and will call for a new trial. The company said it expects these motions to be decided in the first quarter of 2004.

If the motions are unsuccessful, Bard plans to appeal.

The company said the payment wouldn't have a "material adverse effect" on Bard's liquidity and that it remains "comfortable" with 2004 Thomson First Call earnings estimates. Bard said its sales, margin and operating outlook for 2004 remains unchanged.

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